Highlights:

  • FiVerity, founded in 2017, provides artificial intelligence and machine learning solutions for financial institutions to detect new and emerging forms of cyber fraud.
  • By enhancing its machine learning algorithms and its network of data providers with the new investment, FiVerity intends to identify new methods used by fraudsters and compare them to patterns within the systems of financial institutions.

FiVerity Inc., a startup owning a anti-fraud collaboration platform, announced recently that it has raised four million dollars in new funding to grow its network of information providers and data while integrating advanced machine learning algorithms.

FiVerity, established in 2017, helps financial institutions detect new cyber fraud using AI and machine learning solutions. Through the company’s partnerships with banks, regulators, credit unions, and law enforcement agencies, the platform responds to industry-wide fraud activity using secure and compliant information sharing and each institution’s fraud analysts.

According to FiVerity, rising fraud rates are only part of the problem that companies face as criminals continue to deploy advanced automation and AI-based tools, making it significantly more difficult for financial institutions to detect episodes of fraud. Failure to detect and halt fraud as soon as possible can result in legal consequences and the loss of vital client relationships.

With the new funding, FiVerity plans to improve its machine learning algorithms and its network of data providers in order to better detect new fraud techniques and compare them to patterns found in the systems of financial institutions. The strategy is said to expedite the detection of fraudulent accounts and the dissemination of these threats to the broader financial community to safeguard personally identifiable information and halt these activities before significant damage is caused.

FiVerity works with financial institutions, regulators, and organizations including the U.S. Federal Reserve and the Financial Crimes Enforcement Network on its Anti-Fraud Collaboration platform to understand industry demands and ensure its solution meets them.

Greg Woolf, FiVerity’s Chief Executive, said, “Fraudsters have become increasingly innovative, turning to new AI and automation techniques to successfully deceive financial institutions into granting loans, opening accounts, and approving transactions. This latest investment provides the additional resources needed to expand our offerings with new real-time collaboration and information capabilities that allow financial institutions to take a proactive approach to fraud detection — identifying fraudulent activity before it impacts their business, like an ‘antivirus for fraud.”

The seed round was led by Mendon Venture Partners LLC, with participation from FinCapital LLC, Service Provider Capital LLC, Mendoza Ventures LLC, and Grasshopper Bank N.A. John Clausen, a veteran financial services investor, significant partner at Mendon Venture Partners, and former N.Y. Federal Reserve Bank regulator, will be joining as a board of director at FiVerity.